Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Tropa company produces special pills to relieve stressful situations during exams. The company manages the inventory using the FIFO method. Below are data on
The "Tropa" company produces special pills to relieve stressful situations during exams.
The company manages the inventory using the FIFO method.
Below are data on the production process, the factory and the production activity in December 2020:
The production process is carried out in one department. In this department, all materials are put into the production line at the beginning of the process. At the end of the process the units are ready for sale.
Production activity in December 2020:
A. Opening stock in process: 60,000 units that are 100% perfect in terms of materials
and 70% in terms of conversion.
B. Put into production: 720,000 units.
third. Closing inventory in process: 150,000 units that are 100% complete in terms of materials and 40% in terms of conversion.
The cost of the opening inventory in the process: NIS 650,000.
Current costs invested in the production process in December 2020:
Material costs - NIS 1,008,000
Conversion costs - NIS 583,200
2. What is the cost of an equivalent unit in terms of conversion?
1.2
0.85
0.95
0.9
1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started